In a Series C funding, GreenTech Startup Solugen has raised more than $350 million, which will be put into decarbonizing the chemicals industry. The round was co-led by GIC and Baillie Gifford, with the participation of other investors like Carbon Direct Capital Management, Refactor Capital, Temasek Holdings, funds and accounts managed by BlackRock, and Fifty Years. The sole placement agent on the transaction was BofA Securities, Inc.
GreenTech Startup Solugen was founded in 2016 by Gaurab Chakrabarti, M.D., Ph.D., and Sean Hunt, Ph.D., with the mission to reduce or eliminate the emissions from chemical production, which is one of the biggest climate problems on the planet. According to IEA, the chemical industry was responsible for 880 million tonnes of CO2 in 2018, making it the third-largest source of global CO2 emissions.
The company’s goals are to decarbonize the chemicals industry through its patented Bioforge processes, which get bio-based feedstocks to produce chemicals. The products, which are both environmentally friendly and cost-competitive, can significantly reduce or eliminate emissions.
Dr. Gaurab Chakrabarti, CEO, and co-founder at Solugen said: “Our breakthroughs in enzyme and metal catalyst engineering allow us to produce chemicals in a more sustainable and profitable way. We can now deliver for our customers’ performance benefits, cost savings, and most importantly, lower carbon footprints.”
The plans for new funds are to scale up the development of Solugen’s Bioforge technology platform, which is used to offer the company’s customers products with lower-carbon and carbon-negative chemicals materials, while additionally furthering the reach of its product portfolio.
Thanks to its current Bioforge platform, the company is able to tackle an important portion of the chemical products that are on the market as well as launch new bio-advantaged products. As a result, the solution developed by the GreenTech startup can decarbonize some of the largest carbon-emitting segments of the modern economy, helping companies to be responsible stewards of the environment and their local communities.